Weekend Reading – Blowing $61 million, don’t panic, power of compounding and more #moneystuff
Welcome to my latest Weekend Reading edition – where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
This was my lone post from this past week:
We finally made a decision about moving – although it wasn’t easy (for me at least!)
Enjoy the following news and these articles. Take care!
Former NBA No. 1 draft pick Joe Smith earned $61 million over his 16-year career. Today, he’s living paycheck-to-paycheck and owes $157,000.
Tawcan advised you not to panic on your journey to financial independence.
Get Rich Slowly reminded everyone about the power of compounding. We try and keep these three investing principles top of mind as well:
- Start investing early. The sooner you start, the more time money has to work. We really didn’t start our saving for retirement until our early 30s – but looking back 10 years now, I’m glad we did.
- Stay disciplined. Making regular contributions to our retirement accounts will pay off. Thanks to this discipline we’re more than halfway to this major financial goal to stop working or at least working whenever we want.
- Be patient. Easier said than done – especially with Trump running the U.S.A like some spoiled high-school brat who got elected class president. (I digress) Over time we know more money should show up in our accounts via dividends and price appreciation.
Take advantage of these saving and investing deals!
Last but not least – what is it going to be for you? Your money or your life?
Save, invest and prosper. Thanks for reading and enjoy your hard-earned weekend.
Mark
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've surpassed my goal and now investing beyond the 7-figure portfolio to start semi-retirement with. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Too Funny! You guys make me laugh. AND you call yourselves long term investors?
Tawcan
There is a great documentary on pro athletes just like Joe Smith. The percentage is about 80% going bankrupt within 5 years of leaving pro sports. There is a former player turned financial advisor that is already trying to educate and help them now. Hopefully they can save some of these people from themselves.
Sad isn’t Paul? Thanks for sharing. Hopefully that former player turned advisor can help some younger kids and athletes.
Here is the link, YouTube has the documentary available for free. It’s a very riveting video to watch. It’s so opposite of what most of us are trying so hard to do. That’s what makes me shake my head. If any of us trying to save 1 to 3 million over 30 years, could simply make that all in 1 or 2 years, we would be set for life. These folks let that and more slip through their fingers every year, Poof gone…
https://youtu.be/Elfw0ESih-A
Thanks Paul. I’ll check it out. I would be absolutely “set” with no debt and $2 M in the bank. Sad cases many of these athletes.
Tough week in the market. At least PWF raised their dividend. I’m not convinced there will not be continued turmoil with the U.S. seemingly going down a path to further trade issues. One never knows with Mr Trump until it happens but I have to believe the market is a tad bit jittery. Probably won’t take much to stampede the herd.
Canada’s inflation seems to suggest another bump in the bank rate is more probable and frankly I can’t see anything positive for the markets in Canada either.
Tough indeed. Ladies and gentlemen fasten your seat belts!
For sure Mr. Trump and company are sending shock waves around the globe. More attention for him that he adores.
I read the odds of a rate hike in May have now increased to 82%. Wouldn’t surprise me to see that one and another later this year but of course there are many moving parts to all of that.
http://business.financialpost.com/news/economy/canada-fx-debt-c-rallies-as-rising-inflation-boosts-rate-hike-chances
Ya, fasten your seat belts, or maybe get off the ride. Something *feels* different this time.
I know eh? A bit worried but I need to stick to my plan. Buy and hold stocks and ETFs for income.
Could be. One never knows in advance.
Pick your allocation and ride that horse. I am sure you did the right thing for Lloyd with your recent changes. I walk the tightrope too but about 5+ years ago decided to builld a decent safety net and added foam blocks too. Will it be needed or is it enough????? I dunno but I hope to keep sleeping fine and putting food on the table!
I’m probably going to hold what I’ve got in the market for now. I’m not going to commit any new or renewing funds to a market or sell until the smoke clears (tariffs, NAFTA, mid-terms, trade wars, etc etc). I don’t see much potential for any upside and lots of potential for a downturn. If I’m wrong, all I’ve missed is a few dividend payments and possible capital gains. Too safe? Perhaps, but I’m fine with that. I think we’re on the same wavelength RB.
Same Lloyd. I will pick up more of my existing shares (via DRIPs, not going to turn those DRIPs off) but I may consider buying more BPY if that price continues to drop. I recently bought some in the last week.
If I was ten years younger or already didn’t have “enough” my attitude would likely be different. At this stage in my life, I see no logical or intelligent reason to subject further funds to the risk that seems to pervade the market.
I got 4 notifications yesterday and one today for a few companies on my watch list that all made 52 week lows.
BCE, ENB, TRP, CU, BPY.un
No real plans to buy more at this time as I’m fully equity invested+ to my plan but I’m watching!
Crazy eh? I own them all RBull and will buy more if and when I can this year.
“but I’m watching!”
Yup, me too. For now I’ll just continue with the DRIPs. Acquiring them at these lower prices is nice and in some cases it might even bump it up by a share.
Trump could put his little fingers on the big red button at any time…so…while the planet is still around I’ll be happy having a small dividend raise.
Another rate hike is on the way for sure this year. I should have put that prediction in my list!
Half through “Trumpocracy today”… GEEZ – kinda scary.
Another hike…I think/guess 2 more in 2018 and 2 more in 2019.
Library is holding my Retirement Income For Life now – F Vettese. They didn’t have it. I requested from our librarian and they ordered for me.
You might be right, let’s see 🙂
Who knows? Simply basing those guesses by the forecasts by the new US fed who is telegraphing a long ways out aggressive rate hike plans for the next couple of years. I’m sure this is to lessen surprise and moderate impact on the markets. In Canada we’ll probably follow somewhat what rates do in the US based on history.
http://business.financialpost.com/news/economy/fed-raises-key-interest-rate-by-a-quarter-point
Thanks for the link.
Joe Smith making $1.3M per year could easily spend that much and more give the lifestyle they would live. Unfortunately, most don’t look beyond their current situation and probably believe there will always be enough to carry them through their career and beyond. No one, their parents, agent, friends and themselves ever told them what “Pay yourself first”. Put 10% of your earnings into savings and leave it alone.
Some of these athletes may not be coming from any wealth – so to go from “have nots” to extreme wealth it’s almost near impossible for them to control themselves.
Thanks for the mention Mark! That’s crazy professional athletes blow millions of money like no tomorrow. The different professional leagues should teach their employees how to manage money!
Have a greet weekend.
Absolutely wild. All the best.
Joe Smith…what’s there to say other than shake my head. Truly unbelievable.
Andrew Hallam…haha why am I not surprised at that outcome.
3 principles…. definitely some key ones. Being patient and focused for the long term might come in handy for the period now and what’s likely to follow for a while. LOL on the Trump comment. You give him more credit than I do. I’m thinking grade 3-4. As a former teacher of that level my wife concurs. Reading Trumpocracy – The corruption of the American Republic right now and have Fire & Fury coming up.
Have a good weekend all.
Fire and fury coming!! All the best.
Focused for long term is really what I have to do for this year I guess. It’s hard to see my portfolio lost value more than one month of my household expense in a single day.
I think so May re: “Focused for long term is really what I have to do for this year I guess.” I think it’s all we can do…
Not sure why Canadians focus on Trump so much when we have a far worse leader and confused government in Canada we can criticize just as easily running our own country into the ground. I don’t get it.. We talk condesendingly of the US president while the world laughs at our leader?
I think we can all agree Trump is very, very, very, different than most “leaders”.